Laconia Resources has entered into a USD 7.5 million JV agreement with Chinese syndicate Sinoz Mining Investment Group Pty Limited for the exploration and development of its Mooletar Iron Ore Project.

The company has already completed a Scoping Study to evaluate Mooletar and Laconia sees the agreement as a significant validation of the project’s potential.

The JV is a three stage agreement which is designed to deliver a JORC Indicated Resource and Mining Licence at the project. Laconia will manage exploration and hold a 20% free carried interest in the project up until a decision to mine.

Mr Ian Stuart MD of Laconia said that "We are delighted to have entered into this joint venture to take the Mooletar Project forward. The funding provided by our JV partners will allow us to complete detailed exploration and development at Mooletar and unlock the significant development potential of the project for the benefit of our shareholders."

The project is near Mt Magnet in Western Australia’s mid west iron ore precinct and is well located 330 kilometers east of Geraldton and about 125 kilometers from the proposed rail line in the mid west infrastructure corridor that would access the Oakajee port infrastructure. It is also accessible by sealed roads.

Under the JV agreement, Sinoz will invest USD 7.5 million within 24 months, over three stages. In stage 1 an initial USD 1 million is to fund an exploration program at the Mooletar Project. A further USD 1.5 million will fund stage 2, which will give Sinoz a 50% interest in the JV. Stage 3 will involve a further USD 5 million funding, which will give Sinoz an 80% interest in the JV.

The JV will pertain solely to iron ore rights at the Mooletar Project, and Laconia will retain the mineral rights to gold and all other minerals. The JV agreement will be subject to Foreign Investment Review Board approval and other requisite approvals.